Central Banks' Weak Appetite for Gold Amid Sharp Price Decline

The recent decline in gold and silver prices has been sharp, but history suggests it's hardly unprecedented. The current drop is comparable in magnitude to the 2020 correction, prompting investors to wonder whether it's time to return to these precious metals. However, a closer look at first-quarter net purchases reveals that central banks' appetite for gold was weak, with only 57 tonnes bought during this period.

This figure includes two notable sales: 70 tonnes by the Turkish central bank and 22 tonnes by the Russian central bank. As such, investors who took profits in gold and silver at higher prices are advised to continue sitting on the sidelines with their profits intact for now.